Financial Market Overview
19th November, 2018
MARKETS AT OPEN:-
- The Indian rupee opened flat against the U.S. currency, in line with other regional currencies, after dollar index slipped to an over one-week low following remarks by the Federal Reserve vice chairman. The Indian currency opened at 71.92 versus its previous close of 71.92. While the immediate uptrend in the rupee may remain intact after posting a weekly close above 72, the going for the rupee will likely not be easy in the coming days. There will be resistance for the rupee at around 71.80 and 71.50 levels, persistent dollar demand by corporates and RBI’s need to replenish the depleted foreign exchange reserves.
- We expect USD/INR to trade in a range between 71.85 – 72.25 today.
- Benchmark indices are trading higher in the opening session with Nifty trading above 10,600 level.
- The Sensex is up 160 points at 35,617 or 0.46 % while Nifty is up by 39 points at 10726 or 0.38 %.
- Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.35% while the Hang Seng is up 0.35%. The Shanghai Composite is up bu 0.26%. The Australian ASX 200 is down by -37 points or 0.66 %.
- European markets finished lower on Friday with shares in London leading the region. The FTSE 100 is down 0.34% while France’s CAC 40 is off 0.17% and Germany’s DAX is lower by 0.11%.
- The S&P 500 and Dow Industrials rose on Friday after President Donald Trump said the United States may not have to impose further tariffs on Chinese goods, but declines in shares of Nvidia Corp, Amazon.com Inc and Facebook Inc helped to drag down the Nasdaq.
- The Dow Jones Industrial Average rose 123.95 points, or 0.49 percent, to 25,413.22, the S&P 500 gained 5.94 points, or 0.22 percent, to 2,736.14, and the Nasdaq Composite dropped 11.16 points, or 0.15 percent, to 7,247.87.
- The dollar index dropped 0.5% on Friday and 10-year Treasury yield closed at its lowest in seven weeks after Fed Vice Chairman Richard Clarida, in an interview with CNBC, said that U.S. monetary authority was close to being neutral on interest rates and additional increases should be based on incoming data. Further, Clarida remarked that there were signs that the global economy was slowing, something which is relevant to the U.S. outlook.
- The Fed Vice Chairman’s comments, to an extent, assuaged investor worries over the extent of how much U.S. short term rates could rise in the coming year. Clarida’s remarks follow Fed Chair Jerome Powell’s comments last month that indicated that the U.S. monetary authority may want to increase rates beyond neutral if there were signs of overheating.
- The Indonesian rupiah, the Thai baht and the Korean won paced advance in regional currencies on Monday, up by 0.2% each. The Chinese yuan edged lower to 6.9436. On Friday, U.S. President Donald Trump reportedly said that he was hopeful about reaching a trade deal after China responded to his demands for reform.